MedcoEnergi performance and Indonesian energy trends

PT Medco Energi Internasional Tbk reported strong operational and financial performance for the first half of 2026. The company’s oil and gas production reached 170,000 barrels of oil equivalent per day, a 19% increase compared to the same period the previous year. Gas production accounted for approximately 72% of total output, driven by rising regional demand.

Financially, the company recorded a 282.3% year-on-year surge in net profit, reaching US$67.4 million in the first quarter of 2026. Revenue for that period rose 19.2% to US$668.3 million, while EBITDA increased 5.7% to US$351.1 million. MedcoEnergi is maintaining its 2026 guidance with a production target of 165–170 mboepd and a capital expenditure allocation of US$415 million for oil and gas. Additionally, Medco Power reported electricity sales of 2,323 GWh in the first half of 2026, a 16.5% increase, with renewable energy capacity at approximately 26%.

As of September 2026, the broader Indonesian energy sector is experiencing intensified competition. Global companies such as BP, INPEX, and Petronas are increasing exploration efforts in Eastern and Central Indonesia, specifically targeting blocks like Agung, Barong, and Serpang to discover new reserves. Simultaneously, the Mineral Industry Agency (BIM) has noted a shift in national power metrics, suggesting that global economic strength is moving from fossil fuel reserves toward the ownership and extraction technology of rare earth elements (REE) to support the energy transition.